GBPUSD is the most volatile pair during the European session. This is due to the Retail Sales m/m that came in at 2.3% and the Public Sector Net Borrowing announced at -11.8. The pair came was near the 1.4400 yesterday but failed to stay there; on the release of the news it dipped at 1.4265 but recover above 1.4300 area. EURGBP is trading after the news near 0.7750 area. UK Prime Minister David Cameron appealed to EU leaders to help him settle the question of Britain’s European Union membership for a generation by agreeing a “credible” deal he can sell to the British public to stay in the bloc. The outcome of the EU Summit would have significant impact to EURGBP and traders are advice to monitor it.

ECB January meeting minutes showed that policy makers were concerned of growing risk on growth in and inflation. The minutes noted that there were stronger signs again that repeated downward revisions of the inflation outlook were feeding through to inflation expectations, which had again increased the probability of the Eurozone economy remaining in low inflation environment for an extended period of time. To this stamen we can add the Organization for Economic Co-operation and Development lowered 2016 global growth forecast to 3.0%, down from prior projection of 3.3% in November. OECD warned of global risks and that monetary policies cannot work alone as it urged that a stronger collective policy response is needed to strengthen demand.

Other data release so far showed the All Industries Activity m/m from Japan at -0.95 and the German PPI m/m at -0.7%. Canada Core Retails sales and the US Core CPI data will follow.

Search

Newsletter

Forex Risk Warning:

Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. It is important that you fully understand the risks involved before deciding to enter into Forex Trading. Please Unfortunately the services of the company aren't provided to residents of Iran, North Korea.Further explanation in this link